NCC says order inflow from water, irrigation segment is strong
NCC has bagged five orders - in water, electrical and irrigation divisions - aggregating to around Rs 3,600 crore from the state government agencies for the month of December. “This year we made a good beginning. For the quarter three, we have bagged very good number of orders,” said Vijay Kumar, Head and VC-Finance at NCC while speaking to CNBC-TV18.
NCC has bagged five orders - in water, electrical and irrigation divisions - aggregating to around Rs 3,600 crore from the state government agencies for the month of December.
“This year we made a good beginning. For the quarter three, we have bagged very good number of orders,” said Vijay Kumar, Head and VC-Finance at NCC while speaking to CNBC-TV18.
Out of these five orders, two orders worth Rs 1,871 crore are related to the water division, two orders worth Rs 993 crore pertain to the electrical division, and one order worth Rs 738 crore is from the irrigation department.
The contracts need to be executed in a time span ranging from 18 months to 36 months.
Out of these orders, one order worth Rs 321 crore pertained to the electrical division, and the second order worth Rs 55 crore was for the roads division.
The order inflow for the current year is around Rs 12,000 crore.
“Largely the orders have come from the water, electrical and irrigation segments. We are one of the front runners in Jal Jeevan Mission. We have these orders from Uttar Pradesh (UP), Karnataka and other states. Going forward, these segments are going to contribute a good chunk of revenue to the topline of the company,” he explained.
The company has one order from Brihanmumbai Municipal Corporation (BMC), which is sewage treatment plant in Malad. “That is of Rs 4,000 crore,” he said.
DAM Capital Advisors Limited and Yes Securities has ‘buy’ call on the stock.
In quarter one and quarter two, the company had clocked around Rs 3,000 crore of execution levels. “I expect the same execution level should continue. However in quarter three and four the execution levels will be a bit more because the activity will be more in last two quarters,” he said.
In the September quarter, NCC's net sales increased to Rs 3,373.43 crore as against Rs 2,581.37 crore in the same period a year ago. The company’s net profit stood at Rs 137.54 crore.
The stock was up 9.30 percent in last one week and 14.10 percent in the past month.
For the full interview, watch the accompanying video
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(Edited by : Anushka Sharma)
First Published: Jan 4, 2023 7:50 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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